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BLUF: R&D units employ skilled workers to improve weapons and equipment to suit real battlefield needs, but they’re underfunded.
Ukraine will open offices in Copenhagen and Berlin to export sea drones and artillery.
It takes up to three or four drone interceptors to bring down a single Shahed kamikaze drone.
The new head of the State Customs Service is expected to be appointed in March 2026, three months later than initially planned.
Ukrainian Armor has started producing 155 mm- and 105 mm-caliber ammunition under a Czech license.
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THE BIG STORY: How R&D units operate in the Ukrainian army
R&D units are made up of specialists who work directly within combat units to develop and modernize equipment.
Nearly every unit set up its own R&D laboratory, bringing in specialists to adapt and develop equipment for operational needs. But there is no official number because the informal detachments are not recognized at the government level.
These teams usually include former civilian engineers and programmers. They use feedback from the front line to refine drones, repair communication systems, and integrate new technological solutions. This approach also allows conscripted soldiers to be placed where their knowledge and abilities are most valuable.
“An R&D unit is precisely the unit that quickly finds solutions [to problems] faced by [drone] pilots, transmits this information to different manufacturers, and then demonstrates ready solutions,” explained Dmytro Filatov, commander of the 1st Separate Assault Regiment, in which an R&D unit has been operating for almost two years.
According to Filatov, almost all received FPV and UGV systems are refined by specialists from R&D units. Only aerial attack systems, Leleka UAVs, or the Vampire bomber drone do not require modifications. However, ground stations are upgraded, with amplifiers installed and the antenna modules themselves improved.
Ukrainian FPV drone Khyzhak (Predator) REBOFF. Photo by 3DTech.
Some of these changes are passed on to the manufacturers, allowing the next batches to include adapted models. But even as developers are implementing modifications, new challenges often arise, and the updated product can suddenly lose its relevance.
“For our unit, if we see an issue, then our engineers try to solve it,” Hlib, an FPV drone engineer in a volunteer unit, told Counteroffensive.Pro, asking to be identified only by his call sign for security reasons.
His unit is up to 100 people, which allows for the problem to be quickly identified and resolved without going through a strict hierarchy. He said their engineering lab consists of four people, including drone pilots.
Many Ukrainian units have recognized the need for their own R&D departments and established them, tailoring technology directly to their operational needs. The Birds of Magyar brigade was among the first to successfully experiment with FPV drones equipped with fiber optics, for instance.
The Darknode unit of the 412th Separate Nemesis Regiment has developed its own interceptor designed to counter Shahed drones and is actively scaling production.
The Lazar Separate Special Forces Detachment of the National Guard produces all of its drones within its R&D unit. And the 3rd Assault Brigade has developed its own UGV that uses wheels equipped with anti-tank mines. The TM-62 anti-tank mines act as both wheels and explosives, allowing the UGV to carry an extra payload.
A drone with TM-62 mines instead of wheels. Photo taken from ArmyTV.
While the Russians also form their own R&D units, they are not as widespread as in Ukraine, Filatov said. The large-scale deployment of R&D units across multiple military formations provides the Ukrainian forces with a significant advantage, he added.
In the Armed Forces of Ukraine, R&D units are not officially recognized, and there are no established positions for such groups. These units operate as temporary, joint detachments formed by a commander’s order, Filatov explained.
Because of this lack of formal status, there's no mechanism for funding from the MoD budget.
The financial and operational support of such departments is mainly provided through volunteer fundraising or with the assistance of manufacturers, who sometimes supply the materials.
At the same time, specialists are unable to earn high salaries, as they are not usually on the front line.
What is the legal status of R&D units?
In August 2025, the Verkhovna Rada passed a law regarding intellectual property rights for objects created during military service, and it was signed a month later by President Zelenskyy. The document establishes a procedure for assigning rights to inventions created by servicemembers.
Under the law, the servicemember who developed the invention holds the right to authorship and recognition. The developer also has the right to fair compensation for creating such intellectual property. At the same time, property rights to the created object — the right to use, license, or transfer it — go to the state.
The law also stipulates that if the competent authority, such as the Ministry of Defence’s Intellectual Property Office, does not apply for state registration of the object within four months, this right may revert to the developer.
This law helps to better regulate the military development sector. For field R&D units, it provides the chance for inventors to legally secure their work.
If R&D units are established across all military formations, it will also be possible to scale successful upgrades, Filatov added. This would encourage healthy competition between units and provide commanders with a tool to enhance capabilities.
Units would be able to report on the upgrades they implement, enabling the General Staff to assess the effectiveness of solutions and decide whether to implement them on a mass scale or procure them centrally.
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BUSINESS LUNCH TOPICS: What our reporting shows!
Ukraine will establish two export offices in Europe
Ukraine will establish two representative offices in Copenhagen and Berlin to sell sea drones, Zelenskyy announced. Oleksandr Kamyshin, Zelenskyy’s advisor on Strategic Issues, will handle weapons exports in Europe.
A delegation will also head to the U.S. next week to discuss the drone deal. Read more about this in our previous issue.
Sea drones and some artillery systems can be exported abroad because Ukraine can produce more than the Defense Forces need. Exports may also include weapons that EU partners need in exchange for items critical to Ukraine, Zelenskyy said.
How Ukraine's interceptor industry is growing
Ukraine currently has about 20 manufacturers of Shahed interceptors. Of these, around 10 regularly supply interceptors to the state and charitable foundations. Another four to five have significant growth potential, Bohdan Danyliv, head of the military department at the Serhii Prytula Charity Foundation, told Counteroffensive.Pro.
Key requirements include speeds over 200 km/h and the ability to stay airborne at this speed for 6-10 minutes.
According to Danyliv, there are several obstacles to scaling up and deploying interceptors on a large scale, including:
Coordination between detection systems, mobile fire groups with interceptors, and a clear division for zones of responsibility. In other words, sometimes multiple crews go after the same Shahed.
Not enough trained crews. The foundation has started training pilots, with one course lasting two weeks. It takes a month for a crew to be able to perform missions effectively.
Lack of effective AI-based solutions that would reduce dependence on operator skill.
It takes an average of 3-4 interceptors to down a Shahed because it is a large drone with a nearly 3-meter wingspan, making it resilient to hits. But it also has weak points, which Danyliv identified as:
The fuel tank. The fuel doesn't always ignite, but if you puncture the tank, the drone won't be able to reach its intended target;
The engine;
The warhead.
We previously covered how Shahed interceptors work here.
New deadline for selecting a head of Customs
Last week, a new deadline was approved to select finalists for the position of head of the State Customs Service. Two finalists are now expected to be chosen in March 2026. The timeline now looks as follows:
November – submission of competition applications;
December – review of applications and admission to the competition;
January – candidate testing;
February – integrity checks of candidates;
March – final interviews and selection of two competition winners. Then the Cabinet of Ministers will vote for the final candidate.
The competitive selection process for the head of the State Customs Service is expected to be announced in mid-November. The deadline for submitting applications will be 1 month after the competition announcement.
Previously, Ukraine had planned to appoint a new head by December in accordance with an agreement with the International Monetary Fund. We reported on the threat of the missed deadline back in September.
Ukrainian Armor has started producing shells under a Czech license
Ukrainian Armor, an armored vehicle and ammunition manufacturer, has started producing 155 mm artillery and 120mm tank ammunition under a license from the Czechoslovak Group (CSZ Group).
The company has a contract with Ukraine's Ministry of Defense, Ukrainian Armor told us. Due to budget constraints, however, most of the production will be carried out through the Czech ammunition supply initiative.
Bureaucratic obstacles have long been an issue at Ukrainian Armor.
Back in April, Ukrainian Armor CEO Vladyslav Belbas told Counteroffensive.Pro that the Defense Procurement Agency was complicating procurement processes. Due to the sensitive nature of the topic, no further details were disclosed about the nature of these obstacles.
It was precisely because of these difficulties that CSZ Group provided a license for shell production with plans to increase localization from 50 percent to 80 percent over time.
"As in the initial agreements, the first year of cooperation provides for production of up to 100,000 shells of 155mm caliber and 50,000 of 105mm caliber, but we plan to double capacity going forward," said Belbas.
Earlier this year, Ukrainian Armor had plans to produce 300,000 rounds of ammunition annually.
Ukrainian orders/legislation we’re tracking:
By: Oksana Zabolotna
Granting the Right to Use Defense Technologies
Resolution of the Cabinet of Ministers of Ukraine No.1310 of October 13, 2025
Why it’s important: This establishes a mechanism for transferring technologies developed by the Ministry of Defense to defense manufacturers to accelerate production and introduce innovations into the Armed Forces. It enables the involvement of the private sector in applying technologies created within the Armed Forces, ensuring author supervision, protection of confidential information, and the possibility of international cooperation with NATO.
Proposals:
An experimental project will last through the duration of martial law, but not more than two years.
The Ministry of Defense will grant manufacturers the right to use its technologies free of charge under a contract.
Access will be provided to state contractors, critical enterprises, and parties listed in the electronic register of defense contract performers.
All parties involved will be required to sign NDAs, familiarize themselves with technical documentation, create test samples, and conduct testing.
Modification of technologies will be permitted, with rights transferred to the Ministry of Defense and developers retaining author supervision.
The Ministry of Defense may grant rights to NATO defense authorities for producing equipment to be supplied to Ukraine as assistance.
The State Service for Export Control will issue general or open export licenses within the project’s framework.
Stage: Entered into force on October 21, 2025.
Initiator: Cabinet of Ministers of Ukraine.
What’s next: Implementation of the resolution.
ON THE MOVE: Professional movement, promotions and industry news.
Know someone in the defense tech space who has made a professional move? Drop us a line at [email protected]!
Marco Angelelli started a new position as CEO at ANGELELLI Defense, a military consulting and training company. Previously, he was the president of the Italian shooting federation, Federazione Italiana Tiro a Volo.
Snake Island Institute, an NGO established to strengthen ties with the U.S., is hiring a head of communications, an advocacy manager, and a defense tech associate.
Kate Haltseva has joined Vyriy Drone, a drone maker, as an HR people partner. Previously, she worked at EvoPlay, a B2B solutions provider for online gaming.
30 SECOND ELEVATOR PITCH:
Farsight Vision is a developer of software and hardware products that enable humans and robots to work together using 3D contextual awareness and AI-powered scenarios in dynamic environments.
They are creating 6 products: FSV Mapper for preprocessing and transmitting photos, videos, and streams to the FSV platform.
The FSV APP utilizes 3D data to simulate real-world operations and create maps of the environment. FSV Localiser provides coordinates of a UAV by intercepted or received video data.
FSV Navigator provides the capabilities for operation and route planning in 3D space. And, FSV Augur AI is the actionable interface for decision making in complex data environments including the contact line.
“We are fundraising more than $8 million for deepening personalization for customers, creating an ecosystem of operational-tactical situational awareness to kill chain coverage, preparing for global scale, and collaborating with UAV and UGV manufacturers in the robotic networks,” said Viktoriia Yaremchuk, co-founder of Farsight Vision.
MUST READS:
TAF Industries, a Ukrainian drone maker, has introduced the TL Spectrum spectrum analyzer to assess electronic warfare performance at specific frequencies.
Ukraine has unveiled a concept for an unmanned fighter jet, FA v1. According to the presentation, it will be capable of flight at 250 km/h, has a range of 30 km, and a maximum height of 5,000 meters.
Fighter Aircraft FA v1. Photo taken from the presentation
Shahed kamikaze drones are now, in some cases, a bigger issue than Russian ballistic missiles, said Zelenskyy. Hundreds of drones require numerous countermeasures – including F-16s, helicopters, interceptors, and other measures.
Fire Point has updated its FP-1 deep-strike drone, enabling it to transmit images from its onboard cameras to operators for manual targeting.
Ukraine has revealed that it destroyed one of three Russian Oreshnik ballistic missiles last year. Vasyl Malyuk, chief of the SBU, said it was destroyed in July 2024 with the coordination of HUR, SBU, and external intelligence.
Russia has begun to attack Ukraine more frequently with its new 9M729 cruise missile. It has a range of 2,500 km and is launched from the Iskander launcher. It was due to the development of this missile that Trump withdrew the U.S. from the Intermediate-Range Nuclear Forces Treaty with Moscow in 2019.
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